NATIONAL Farmers' Union of Scotland vice-president Peter Chapman has told European Union officials in Brussels they will have to re-think proposed reforms of the Common

Agricultural Policy.

Chapman and union president George Lyon were at meetings yesterday to consider the implications of the Agenda 2000

programme.

''Scottish farm incomes are already on the ropes,'' said

Chapman. ''Agenda 2000 must not be allowed to make things worse. It is difficult to talk seriously about measures to adjust the way in which Europe's agriculture

policy will operate in coming years when the real concern of our farmers is whether their businesses will be operating in coming months.

''The milk sector is a prime example of how a strengthening currency has hit the very core of our industry.

''Since early 1997 about #500m has been wiped off UK dairy farmers' incomes. Yet the

Government has failed - so far - to acknowledge the need for all supported sectors to receive

agrimoney compensation.

''As if the present situation wasn't bad enough, the Commission's Agenda 2000 proposals promise further misery. If they go forward in their present form, prices will drop even more.

''The Commission is trying to create a situation where European prices are comparable to world prices - but the conditions under which dairy farmers are trying to earn a decent living are not comparable.'' Chapman said he accepted there had to be change but it had to be gradual change to allow farm businesses time to adapt.

The NFUS has also challenged new EU proposals on housing for laying hens which it argues would hurt rather than help hen welfare. The industry is considering its response to a proposed EU directive laying down minimum standards for the protection of laying hens.

The union had welcomed a call for the space allowance to be increased from 450 square centimetres to 600 square centimetres but it is opposed to a more recent proposal for the cage size to be increased to a minimum 800 square centimetres.

The space allocation suggested by the Commission would lead to more aggression and there would be increased pecking and cannibalism, said Chapman. Implementation of the new standards could cost the European industry more than #4500m.

All cages in use would have to be scrapped and replaced. Not only would egg production across Europe be crippled but the door would be opened to more imports produced to lower standards than applied in the EU.

The proposals would also threaten producers of free-range and barn-produced eggs, he argued.

''The UK is the leading producer under these alternative systems but the Commission has simply ignored the Lion and Freedom Food codes and come up with proposals which would increase the cost to consumers while hurting hens.''